(Bloomberg) -- U.S. red-meat production is set to fall for the first time in several years as the coronavirus spurs an unprecedented wave of processing disruptions, according to the Department of Agriculture.
Annual pork output will be lower this year for the first time since 2014 and beef production will slide for the first time since 2015, the USDA said in its monthly supply and demand outlook Tuesday.
In the past month, the pandemic has forced U.S. packing plants to halt or slow production, bringing down cattle and hog slaughter more than 30%. The interruptions have forced some hog farmers to cull herds, while poultry producers cracked eggs and dairy producers dumped milk as supply chains were upended.
”For 2020, the total red meat and poultry production forecast is reduced from last month as the sector adjusts to COVID-19 and economic uncertainty,” the agency said. “Beef production is reduced as lower expected cattle slaughter more than offsets heavier carcass weights. Pork production is forecast lower on a slower expected pace of slaughter.”
Total U.S. pork output is forecast at 27.45 million pounds for this year, down from 27.65 million in 2019, the agency said.
Cattle futures for June delivery rose as much as 4.4% to 96.75 cents a pound on the Chicago Mercantile Exchange, approaching the daily limit. The contract headed for the fourth gain in five sessions as beef plants reopened gradually. Hog futures rose, snapping a three-session slump.
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